Canada's merchandise trade deficit narrowed to $5.9 billion in May 2025, down from a record high of $7.6 billion in April, according to Statistics Canada. The improvement was partly driven by higher gold exports, although exports to the United States declined to their lowest level since the pandemic. Meanwhile, the United States experienced an increase in its international trade deficit in goods and services to $71.5 billion in May from $60.3 billion in April, as exports decreased more than imports. U.S. imports from China fell 28.3% year-on-year in June 2025, contributing to an overall 3.5% decline in container imports compared to June 2024. China's share of U.S. imports dropped to 28.8% in June, down from a peak in July 2024. The average U.S. container import tariff rate decreased to 21% from a high of 54% earlier in the year following a temporary China-U.S. tariff pause. Additionally, China accounted for only 8% of U.S. smartphone imports in May 2025, a sharp decline from 67% in May 2024. These trends reflect ongoing disruptions in supply chains and trade flows, influenced by tariff policies and broader economic conditions.